Well, apart from the cost...here's what FPI say are the main risks to be aware of: -
What you get back in the future depends on how well the investments perform.
The value of the plan can go up and down. You could get back less than you’ve paid in.
Friends Provident International only guarantee the value if the capital redemption version is chosen and the plan is cashed in at the end of the 99-year fixed term.
When you cash in your plan, you may get back less than your illustration shows. This could happen for several reasons, for example, if:
– investment returns are lower than shown
– charges are higher than shown
– you take out more money than shown.
Some assets carry a higher level of risk than others and may be subject to sudden and large falls in value. This could erode some or all of your capital.
If you or your investment adviser deal excessively and your portfolio value is relatively small, then the value of your Reserve plan may be eroded and the costs may be disproportionately high.
If you invest in an asset denominated in a currency different to the plan currency, the value can go up and down simply because of changes in the currency exchange rate.
Inflation will reduce the spending power of any money you get back in the future.